How Do I Get a Release of Lien Surety Bond?
A Release of Lien surety bond releases a lien that has been filed with a public trustee or court against an estate for an amount claimed for labor and materials furnished for the construction of a building or improvements. Pending final determination of the owner's liability, the owner may release the lien by posting a bond for payment of any amount that may be found due to the individual filing the lien.
What is a Release of Lien?
A release of lien is an agreement between a lender and a borrower under which the lender (lien holder) releases the mortgaged asset or property, although the debt obligation remains in force once the lien is paid.
The owner can obtain a bond from a surety agency such as SuretyGroup.com. The bond is required to ensure that if the owner is found liable, the assets are available to pay the amount due. Generally, the bond requires 100% collateral (cash or a letter of credit) in addition to the premium. The premium will need to be paid annually until the lien is settled.
How Much Does This Bond Cost?
The premium that you pay for a Release of Lien Surety Bond will vary depending on the bond amount.
More Surety Bond Questions?
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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